1. Value Chain Analysis
KDA
Manufacture at $22/stove and sell to micro-entrepreneur at $32/stove
Manufacture pellets at $2/sack and sell to micro-entrepreneur at $3/sack
Costs $1,000 per year to manage each micro-entrepreneur
Micro-entrepreneur
Already have small shops selling other products besides the KDA stoves, but need to hire an additional employee for delivery
Buy stoves at $32/stove and sell at $38
Buy fuel pellets at $3 and sell at $5/sack
Customer
Buy stove at $38
Save $0.10 per pound of pellets purchased over cost of firewood
Buidling a Succesful Social Venture Copyright 2017 Eric D. Carlson and James L. Koch

2. Value Chain Analysis Beneficiaries Process “c”: e.g., Product Sales
Process “z”: e.g.,
Product Installation/Training
Process “y”: e.g.,
Product Delivery
Process “b”: e.g.,
Product Marketing
Process “x”: e.g.,
Product Manufacturing
Process “a”: e.g.,
Product Development
Process “w”: e.g. Supplier
Management
Buidling a Succesful Social Venture Copyright 2017 Eric D. Carlson and James L. Koch

3. Value Proposition Value Chain Analysis
Federal Government Budget & Energy Saving Programs
Highest quality - ½ price
4x faster deployment $
Municipalities Local Government $
Local Government Installs
Act/if
High Quality Design
Low Cost Housing and Panels
Manufacturing
With Partner
SUPPLIERS
Quality LED’s
Electronic
components
Enclosures
Packaging $
Local Distributor
Local contractor
Installs $ $ $
Requirement:
Lighting is a basic need to support
economic development in
underserved communities : slums
and remote rural locations:
Security
Extended working hours
Road Safety
Product flow
Monetary flow
Service 3
Creating Demand
Buidling a Succesful Social Venture Copyright 2017 Eric D. Carlson and James L. Koch